Hi all, I have basic understanding of PoW and get that generally more transactions generate congestion of the network, causing high transaction fees.
But where does that money go?
If, for a week, the average fees for a single transaction goes to $20, does that mean that a) miners make a lot more money than usual or b) blocks are actually harder, and cost more to mine?
A combination of both probably?
If there is competition between miners – which I assume there is – then their profit cannot be so high for very long periods, I’m guessing they self regulate like in any market? So is it then that, at times when fees for a single transaction are $20, we are essentially spending roughly $20 worth of electricity worldwide across miners, even though for the successful miners of that block the cost will not be that high?